The offer was almost three times oversubscribed, with 110,000 investors in total applying for allocations. The shares were priced at €27 each, at the top end of the guidance range, and initially traded up 10%.
The IPO was launched into a narrow window before markets began to deteriorate sharply in 2008, putting NKBM in a stronger position to prepare for the more difficult environment. “We are ready to seize the opportunities for further growth in the region, both through consolidation and acquisition. The turmoil [in financial markets] is going to make us even stronger, more stable and attractive for investors,” says CEO Matjaz Kovacic.
In a mature Slovenian banking market, NKBM certainly made a good investment story, enjoying a 15.15% rise in profits in 2007, cutting the cost-to-income ratio to 51.34% from 54.82% and reducing non-performing loans to 3.53%, from 4.65%. The bank also introduced secure mobile banking to Slovenia, with the launch of its Moneta mobile payments system.
“NKBM is a strong brand with even stronger fundamentals. This is the basis for our strategic directions in the development of financial services, providing an excellent user experience,” says Mr Kovacic.
